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New Rules for Gifts of Artwork and Other Tangible Personal Property

Richard L. Fox, Sallie B. and William B. Wallace Chair in Philanthropy at The American College:

In one of its most publicized and criticized provisions, the Pension Protection Act of 2006 ("Act") makes dramatic changes to the tax rules applicable to contributions of fractional interests in tangible personal property, including artwork, an increasingly popular means of giving to museums. These changes create a substantial disincentive for donors to continue to contribute such interests and, as a result, Congress may be pressed to reconsider some of these changes.

Five page article in pdf here.